Written evidence submitted by M. Pierre
Mirel, Enlargement Directorate, European Commission
RELATIONS BETWEEN
THE EU AND
CYPRUS
1. ACCESSION
OF A
DIVIDED CYPRUS
In 1990, the government of the Republic of Cyprus
applied for EU membership in the name of the whole island. Drawing
on the European Commission's opinion of 1993 the Council decided
in 1995 that accession negotiations with Cyprus would start. In
return, Greece gave up its long-running veto against the establishment
of a customs union between the EC and Turkey. When the negotiations
started in 1998, President Clerides invited the Turkish Cypriots
to be included in negotiations, an invitation that Mr Denktash
declined.
As for the conditions of Cyprus' accession,
a similar package deal was concluded at the European Council of
Helsinki (1999). On the one hand the Council accepted the Greek
demand and decided that its decision on accession would "be
made without the above [a solution to the political problem] being
a pre-condition." On the other hand, the European Council
stated that "Turkey is a candidate State destined to join
the Union on the basis of the same criteria as applied to the
other candidate States".
On 1 May 2004 Cyprus became a member of the
European Union. There are two specific protocols to the Act of
Accession 2003 concerning Cyprus:
— Protocol 3 on the British Sovereign
Base Areas and
— Protocol 10 on Cyprus defining the
terms of Cypriot accession in view of the de facto division of
the island (attached to this memo).
The main features of this Protocol 10 are the
suspension of the acquis (the EU body of legislation) in
the north (Article 1) and the enabling clause (Article 4). In
view of the spirit and purpose of the Protocol, the acquis
suspension is to be understood territorially, meaning that
Turkish Cypriots enjoy the (personal) rights deriving from EU
citizenship. Article 4 keeps the doors open for the Turkish Cypriots
as it enables the European Institutions to adapt—in the
event of a settlement—in a simplified procedure the terms
of Cyprus' accession with view to the Turkish Cypriots. In addition,
Article 2 of Protocol 10 provides a legal basis for a special
regime defining the terms under which EU law will apply to persons,
goods and services crossing the line (see below 2.). Article 3
ensures the possibility of assistance to the northern part after
accession of a divided Cyprus (see below 3.)
2. GREEN LINE
REGULATION
On 29 April 2004 the Council adopted the so-called
Green Line Regulation based on Article 2 of Protocol 10 (Council
Regulation 866/2004). It provides for special rules concerning
the crossing of goods, services and persons. The Regulation had
to take account of the particularity of the situation and the
political sensitivities on the island. It had to cover, inter
alia, issues like prevention of illegal immigration, customs,
food safety, taxation, and travel facilities. Generally speaking,
it was important to find a balance between the need to establish
a clear legal framework and the need to avoid the deepening of
the divide.
The implementation of the provisions related
to the crossing of persons is running fairly smoothly. Free movement
of EU citizens throughout the island, irrespective from their
point of entry, is ensured.
The Green Line Regulation has become fully operational
as regards trade only on 23 August 2004, when specific (implementing)
rules concerning the crossing of goods entered into force. During
the two months since the Green Line Regulation is operational,
goods worth only
100,000 crossed the line. The main products were
lead ingots, terra umbra, paper, vegetables and melons. Unfortunately,
there are still many obstacles. One technical example is the question
of recognition of Turkish Cypriot truck driving licences. More
spirit of cooperation and trust between the two communities is
needed for a proper functioning of the Green Line trade.
In the light of the experience gained since
the Regulation is operational, the services of the European Commission
reflected on possible amendments with the aim to further facilitate
the crossing of the line and to contribute thereby to the integration
of the island. Just to give an example: rules concerning travellers
could be relaxed (currently the value of goods contained in the
personal luggage must not exceed
30 per person; this ceiling could be increased).
Furthermore, trade in certain agricultural goods (in particular
citrus fruit as the main export good) as well as in animals and
animal products (such as fish and honey) should be facilitated.
3. SUPPORT TO
THE TURKISH
CYPRIOT COMMUNITY
Responding to the invitation of the Council
following the outcome of the referenda on the Annan Plan[1]
the Commission proposed on 7 July 2004 a comprehensive package
of aid and trade measures which aim to put an end to the isolation
of the Turkish Cypriot community.
The financial instrument (
259 million 2004-06) is expected to be adopted by
the Council on 23 November after the EP has given its opinion.
The Commission would entrust the European Agency for Reconstruction
(currently responsible for the management of EU assistance in
the Balkans, located in Thessaloniki) with the implementation
of large infrastructure projects under this regulation.
The fate of the regulation for direct trade
between the north and EU-24 is somewhat unclear. Cyprus is categorically
opposed to the direct trade regulation. The question of the appropriate
legal basis remains open. Discussions in the Council continue
on this proposal. The Turkish Cypriot side made it clear that
the direct trade regulation is much more important than the financial
assistance. The reasons for the need for direct trade are:
— the isolation of the Turkish Cypriot
community can only end if we render direct contacts possible;
— economically more advantageous to
trade directly than via middle-men and other ports; besides, preferential
conditions should help exporting the products;
— at present trade with the areas is
in principle open and takes already place under non-preferential
conditions in a limited scale (in 2003 exports from the areas
to EU Member States amounted to approx. US$13 million)
— trade across the Green Line is just
not sufficient—there are too many obstacles (eg driving
licences). During the first two months since the Green Line Regulation
is operational, goods worth only approximately
100,000 crossed the line. This is definitely not
sufficient to end the economic isolation of the Turkish Cypriots.
Under the umbrella of the UN talks on the island,
the European Commission has started a process of explaining the
EU body of legislation (acquis) to the Turkish Cypriots
in February/March 2004. Arrangements are progressing well concerning
support to alignment with and preparation for the implementation
of the acquis in the northern part of Cyprus. Meetings
involving Member States expert teams, Turkish Cypriot participants
and the different European Commission services as well as expert
missions to the north take place constantly organised by the European
Commission service for Enlargement (TAIEX office).
Finally, a pilot project on de-mining activities
in Cyprus was launched (worth
2.5 million), the implementing agency being the United
Nations Development Programme (UNDP). The clearing of mines in
the buffer zone started on 16 November.
4. PEACE PROCESS
Although the prospect of EU accession served
as a catalyst towards more focused efforts to foster a comprehensive
settlement of the Cyprus problem (conclusions of the accession
negotiations in December 2002 in Copenhagen, peace talks in The
Hague in March 2003 with a view to the signature of the Accession
Treaty, Bürgenstock talks and the referenda just before accession),
and in spite of manifold EU support of the UN peace process, a
solution to the political problem has not yet been reached.
The UN plan for a comprehensive settlement of
the Cyprus problem failed to gain the necessary support at the
simultaneous referenda held in Cyprus on 24 April. While the Turkish
Cypriots approved it by a margin of 2:1, Greek Cypriots rejected
it by a margin of 3:1. The Annan Plan is therefore null and void.
In the report on his good offices mission of
28 May 2004, the UN Secretary-General welcomed the decision of
the Turkish Cypriots and called the decision of the Greek Cypriots
a "major setback". In his view the Turkish Cypriot vote
has "undone any rationale for pressuring and isolating them".
In his report on the work of the organisation
of 20 August, the UNSG repeated that he sees at present no basis
for resuming his good offices in Cyprus. He expressed his hope
that the Greek Cypriots would "reflect on their position
so that future efforts can have a good chance to succeed."
The UNSG repeated his call upon the Security Council to encourage
States "to lift unnecessary barriers that isolate the Turkish
Cypriots and impede their development."
No new international initiative is to be expected
in the near future. Cyprus neither does not seem to have a plan/idea
to break the deadlock. Concerning its possible role in a new process,
the European Commission remains ready to support efforts towards
a settlement that would permit a reunified Cyprus to be fully
integrated in the European Union.
In the event of a settlement, the EU will make
use of the enabling clause (Article 4 of Protocol 10) and adapt
the terms of Cyprus' accession with regard to the Turkish Cypriot
community.
[Note: This memorandum is not an official, formal
European Commission document. It is merely a factual paper to
help understand where the EU stands in its relations with Cyprus.]
11 November 2004
259 million already earmarked for the northern part
of Cyprus in the event of a settlement now be used for this purpose."
PROTOCOL No 10
ON CYPRUS
THE HIGH
CONTRACTING PARTIES,
Reaffirming their commitment to a comprehensive
settlement of the Cyprus problem, consistent with relevant United
Nations Security Council Resolutions, and their strong support
for the efforts of the United Nations Secretary General to that
end,
Considering that such a comprehensive settlement
to the Cyprus problem has not yet been reached,
Considering that it is, therefore, necessary
to provide for the suspension of the application of the acquis
in those areas of the Republic of Cyprus in which the Government
of the Republic of Cyprus does not exercise effective control,
Considering that, in the event of a solution
to the Cyprus problem this suspension shall be lifted,
Considering that the European Union is ready
to accommodate the terms of such a settlement in line with the
principles on which the EU is founded,
Considering that it is necessary to provide
for the terms under which the relevant provisions of EU law will
apply to the line between the abovementioned areas and both those
areas in which the Government of the Republic of Cyprus exercises
effective control and the Eastern Sovereign Base Area of the United
Kingdom of Great Britain and Northern Ireland,
Desiring that the accession of Cyprus to the
European Union shall benefit all Cypriot citizens and promote
civil peace and reconciliation,
Considering, therefore, that nothing in this
Protocol shall preclude measures with this end in view,
Considering that such measures shall not affect
the application of the acquis under the conditions set out in
the Accession Treaty in any other part of the Republic of Cyprus,
Have agreed upon the following provisions:
ARTICLE 1
1. The application of the acquis shall
be suspended in those areas of the Republic of Cyprus in which
the Government of the Republic of Cyprus does not exercise effective
control.
2. The Council, acting unanimously on the
basis of a proposal from the Commission, shall decide on the withdrawal
of the suspension referred to in paragraph 1.
ARTICLE 2
1. The Council, acting unanimously on the
basis of a proposal from the Commission, shall define the terms
under which the provisions of EU law shall apply to the line between
those areas referred to in Article 1 and the areas in which the
Government of the Republic of Cyprus exercises effective control.
2. The boundary between the Eastern Sovereign
Base Area and those areas referred to in Article 1 shall be treated
as part of the external borders of the Sovereign Base Areas for
the purpose of Part IV of the Annex to the Protocol on the Sovereign
Base Areas of the United Kingdom of Great Britain and Northern
Ireland in Cyprus for the duration of the suspension of the application
of the acquis according to Article 1.
ARTICLE 3
1. Nothing in this Protocol shall preclude
measures with a view to promoting the economic development of
the areas referred to in Article 1.
2. Such measures shall not affect the application
of the acquis under the conditions set out in the Accession
Treaty in any other part of the Republic of Cyprus.
ARTICLE 4
In the event of a settlement, the Council, acting
unanimously on the basis of a proposal from the Commission, shall
decide on the adaptations to the terms concerning the accession
of Cyprus to the European Union with regard to the Turkish Cypriot
Community.
1 The Council stated on 26 April 2004: "The Turkish
Cypriot community have expressed their clear desire for a future
within the European Union. The Council is determined to put an
end to the isolation of the Turkish Cypriot community and to facilitate
the reunification of Cyprus by encouraging the economic development
of the Turkish Cypriot community. The Council invited the Commission
to bring forward comprehensive proposals to this end, with particular
emphasis on the economic integration of the island and on improving
contact between the two communities and with the EU. The Council
recommended that the Back
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